Former Cherryville finance director charged with embezzlement

Special to the Times-News

Published: Wednesday, January 16, 2013 at 4:30 a.m.

Last Modified: Tuesday, January 15, 2013 at 10:13 p.m.

A criminal bill of information was filed Tuesday in U.S. District Court charging Cherryville's former finance director, Bonny Verley Alexander, with embezzling over $435,000 from the city, Anne M. Tompkins, U.S. attorney for the Western District of North Carolina, announced in a news release.

Another former Cherryville employee, Jennifer Neal Hoyle, has also been charged with embezzling over $92,900 from the city.

Alexander, 58, and Hoyle, 34, both of Cherryville, have agreed to plead guilty to the charges stemming from a joint federal and state investigation into misappropriated city funds, according to the release.

According to the bill of information and the filed plea agreement, up until her retirement in December 2011, Alexander supervised the city's finance department. In that capacity, Alexander oversaw the city's accounting, financial reporting and treasury divisions, as well as the city's revenue collections and customer service departments, the release states.

Alexander also had access to and was able to process payroll payments to Cherryville employees, direct payments for city expenses, issue checks on behalf of the city, remove canceled checks from the city's records and make adjustments to Cherryville's electronic accounting systems, court records indicate.

From about August 2005 through December 2011, Alexander embezzled at least $435,294 of Cherryville's funds and used the money to pay personal expenses, the release says. Court documents show that Alexander made weekly payroll payments to herself which were more than 300% of her authorized net pay from the city. In total, Alexander embezzled about $309,594 from the city in this manner.

Court records also show that Alexander used city funds to pay for personal expenses, including shopping and travel expenses, she charged on her personal American Express credit card by issuing checks from the city made out to American Express.

According to filed documents, Alexander issued the city checks and forged on those checks the signature of another Cherryville employee who was the authorized signatory on the account. Then, to avoid detection, after the forged checks had cleared and were returned by the bank, Alexander would remove them from the city's records, court documents show.

Alexander issued and forged a total of 26 checks from the city, totaling about $97,000, to pay off personal charges on her American Express card.

Hoyle, a former senior customer service representative/utility supervisor for Cherryville, has been charged with and has agreed to plead guilty to three counts of federal program fraud for embezzling about $92,922 from the city. According to the federal charging document and the filed plea agreement, Hoyle was responsible for the collection and posting of utility payments made by Cherryville utilities customers. Hoyle, who reported to Alexander, was terminated in May 2012.

According to filed court documents, beginning in January 2008 through May 2011 Hoyle embezzled about $92,922 from the city by taking cash payments made by customers paying their utilities bills for her own use. Court records show that Hoyle would accept the cash payments from the customers and issue paper receipts. Hoyle would credit the customers' accounts with the payment, keep the cash, and then, using her supervisory override privileges, would go in the computer system and delete the transaction, court records show.

Court records also show that, in order to avoid any potential customer complaints, Hoyle would create entries in the "extra charge" journal in which she would "write off" the cash amount the customers paid so that bills containing the embezzled amount would not be issued, records show.

According to the bill of information, Hoyle's fraud was uncovered when a customer questioned the duplicate charges on her bill and brought in her paper receipt as proof of payment, after Hoyle had failed to convert the customer's cash payment as a "write off" in the "extra charge" journal.

Alexander is charged five counts of program embezzlement. She has agreed to plead guilty to the charges and faces a maximum term of 10 years in prison and a $250,000 fine per count, the release says.

Hoyle has agreed to plead guilty to three counts of program fraud, according to the release. She faces a maximum prison term of 10 years and a $250,000 fine per count. The defendants' initial appearances and plea hearings will be scheduled by the U.S. District Court.

Roger A. Coe, acting special agent in charge of the FBI, Charlotte division; Greg McLeod, director of the State Bureau of Investigation; and Chief James W. Buie of the Gaston County Police Department joined Tompkins in making the announcement.

The investigation into Alexander was handled by the FBI and SBI. The investigation into Hoyle was handled by the FBI, SBI and the Gaston County Police Department. The prosecution is handled by Michael Savage, of the U.S. Attorney's Office in Charlotte.

<p>A criminal bill of information was filed Tuesday in U.S. District Court charging Cherryville's former finance director, Bonny Verley Alexander, with embezzling over $435,000 from the city, Anne M. Tompkins, U.S. attorney for the Western District of North Carolina, announced in a news release. </p><p>Another former Cherryville employee, Jennifer Neal Hoyle, has also been charged with embezzling over $92,900 from the city.</p><p>Alexander, 58, and Hoyle, 34, both of Cherryville, have agreed to plead guilty to the charges stemming from a joint federal and state investigation into misappropriated city funds, according to the release.</p><p>According to the bill of information and the filed plea agreement, up until her retirement in December 2011, Alexander supervised the city's finance department. In that capacity, Alexander oversaw the city's accounting, financial reporting and treasury divisions, as well as the city's revenue collections and customer service departments, the release states.</p><p>Alexander also had access to and was able to process payroll payments to Cherryville employees, direct payments for city expenses, issue checks on behalf of the city, remove canceled checks from the city's records and make adjustments to Cherryville's electronic accounting systems, court records indicate.</p><p>From about August 2005 through December 2011, Alexander embezzled at least $435,294 of Cherryville's funds and used the money to pay personal expenses, the release says. Court documents show that Alexander made weekly payroll payments to herself which were more than 300% of her authorized net pay from the city. In total, Alexander embezzled about $309,594 from the city in this manner.</p><p>Court records also show that Alexander used city funds to pay for personal expenses, including shopping and travel expenses, she charged on her personal American Express credit card by issuing checks from the city made out to American Express.</p><p>According to filed documents, Alexander issued the city checks and forged on those checks the signature of another Cherryville employee who was the authorized signatory on the account. Then, to avoid detection, after the forged checks had cleared and were returned by the bank, Alexander would remove them from the city's records, court documents show.</p><p>Alexander issued and forged a total of 26 checks from the city, totaling about $97,000, to pay off personal charges on her American Express card.</p><p>Hoyle, a former senior customer service representative/utility supervisor for Cherryville, has been charged with and has agreed to plead guilty to three counts of federal program fraud for embezzling about $92,922 from the city. According to the federal charging document and the filed plea agreement, Hoyle was responsible for the collection and posting of utility payments made by Cherryville utilities customers. Hoyle, who reported to Alexander, was terminated in May 2012.</p><p>According to filed court documents, beginning in January 2008 through May 2011 Hoyle embezzled about $92,922 from the city by taking cash payments made by customers paying their utilities bills for her own use. Court records show that Hoyle would accept the cash payments from the customers and issue paper receipts. Hoyle would credit the customers' accounts with the payment, keep the cash, and then, using her supervisory override privileges, would go in the computer system and delete the transaction, court records show. </p><p>Court records also show that, in order to avoid any potential customer complaints, Hoyle would create entries in the "extra charge" journal in which she would "write off" the cash amount the customers paid so that bills containing the embezzled amount would not be issued, records show. </p><p>According to the bill of information, Hoyle's fraud was uncovered when a customer questioned the duplicate charges on her bill and brought in her paper receipt as proof of payment, after Hoyle had failed to convert the customer's cash payment as a "write off" in the "extra charge" journal.</p><p>Alexander is charged five counts of program embezzlement. She has agreed to plead guilty to the charges and faces a maximum term of 10 years in prison and a $250,000 fine per count, the release says.</p><p>Hoyle has agreed to plead guilty to three counts of program fraud, according to the release. She faces a maximum prison term of 10 years and a $250,000 fine per count. The defendants' initial appearances and plea hearings will be scheduled by the U.S. District Court.</p><p>Roger A. Coe, acting special agent in charge of the FBI, Charlotte division; Greg McLeod, director of the State Bureau of Investigation; and Chief James W. Buie of the Gaston County Police Department joined Tompkins in making the announcement.</p><p>The investigation into Alexander was handled by the FBI and SBI. The investigation into Hoyle was handled by the FBI, SBI and the Gaston County Police Department. The prosecution is handled by Michael Savage, of the U.S. Attorney's Office in Charlotte.</p>